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(Reuters) - Allowing a brief U.S. debt default to force government spending cuts is a "horrible idea" that could destabilize the world economy and sour already tense relations with big creditors like China, government officials and investors said on Wednesday.
Originally posted by AlreadyGone
The reason Chine is so upset by this notion is it would hurt the value of US Treasurie,... China has unloaded 97% of their short term holdings. But they still have significant investments in long term which they will slowly divest...if we give them time.
Further, their economy is booming, but artificially so...that is why the Chinese Govt has been building massive cities with no one to live in them...it is a bubble waiting to burst, as long as they are building..it artificially shows growth.
Also, if we default...it will disrupt the world's economy and thus...China's economy. They have to have someone to buy all the stuff they are producing....once it starts backing up, the normal productivity cycle kicks in of cut backs...layoffs...plant closings...this will create a massive unrest in a new and emerging middle class in China...unrest...political unrest...China...which is still Communist, or at least terribly Fascists, does not like unrest..
Even more ominous, such moves by the US could be the unintended catalyst of a world war... the economic petri dish we live in is not so unlike the one the world lived in back in the 1920s and 1930s...
unstable economies, rise in social protests, shifting alliances, decline of old world empires...emergeance of new powers... fledgling militaries exerting themselves.....
Simply read the 1930s histories and exchange the names with todays geopolitical players....kinda scary.
Originally posted by AlreadyGone
Even more ominous, such moves by the US could be the unintended catalyst of a world war... the economic petri dish we live in is not so unlike the one the world lived in back in the 1920s and 1930s...
Originally posted by PrinceDreamer
I do hope the Republicans don't force this issue, it will be catastrophic for the US and the rest of the world, such a deep recession will automatically be followed by a huge WW history tells us as much
Originally posted by Fractured.Facade
Originally posted by AlreadyGone
Even more ominous, such moves by the US could be the unintended catalyst of a world war... the economic petri dish we live in is not so unlike the one the world lived in back in the 1920s and 1930s...
The unemployment situation has already gone on longer than what happened in the great depression.
US economic policies and unfriendly business, manufacturing environment has enabled China's booming economy.
They are literally sucking the life out of the US economy, and our government has made it easy for them.
Seems that despite your claims, China's economy improves as the US fails.
Originally posted by Fractured.Facade
Originally posted by AlreadyGone
Even more ominous, such moves by the US could be the unintended catalyst of a world war... the economic petri dish we live in is not so unlike the one the world lived in back in the 1920s and 1930s...
The unemployment situation has already gone on longer than what happened in the great depression.
US economic policies and unfriendly business, manufacturing environment has enabled China's booming economy.
They are literally sucking the life out of the US economy, and our government has made it easy for them.
Seems that despite your claims, China's economy improves as the US fails.
Originally posted by Fractured.Facade
reply to post by TiM3LoRd
Everybody is, not just the USA.
China is not seeking to only destroy, but to gain global supremacy.
China can't do that without knocking the USA out of that position.... And they are getting very close.
Failure to raise the US debt ceiling could trigger another recession and throw millions out of work, President Barack Obama has said. Mr Obama is struggling to marshal support for a budget package that would include some $4tn (£2.5tn) of cuts. But ahead of renewed budget talks with Republicans on Monday, Mr Obama said the stalemate would be resolved within a "reasonable period of time". The US risks defaulting on its debts on 2 August, when the budget runs out.
Originally posted by TiM3LoRd
Originally posted by Fractured.Facade
reply to post by TiM3LoRd
Everybody is, not just the USA.
China is not seeking to only destroy, but to gain global supremacy.
China can't do that without knocking the USA out of that position.... And they are getting very close.
china is an artificially inflated economy. once America falls so too will china.
President Barack Obama and congressional leaders have agreed to resume the talks, which ended after 75 minutes, on Monday. Mr Obama is struggling to marshal support for a budget package that would cut the national debt by $4tn (£2.5tn). The US risks defaulting on its debts in just over three weeks, when the current federal budget runs out. Eight top Senate and House of Representatives leaders met - unusually - on a Sunday in the Cabinet Room of the White House. As the talks got under way, Mr Obama was asked whether they could "work it out in 10 days". "We need to," he replied.
Originally posted by xavi1000
US budget: No new deal in White House
Talks at the White House to try to break the deadlock over the US national debt have broken up without agreement.
President Barack Obama and congressional leaders have agreed to resume the talks, which ended after 75 minutes, on Monday. Mr Obama is struggling to marshal support for a budget package that would cut the national debt by $4tn (£2.5tn). The US risks defaulting on its debts in just over three weeks, when the current federal budget runs out. Eight top Senate and House of Representatives leaders met - unusually - on a Sunday in the Cabinet Room of the White House. As the talks got under way, Mr Obama was asked whether they could "work it out in 10 days". "We need to," he replied.
They are playing games ..they will raise the national debt ceiling beyond the current $14.3tn. Covering hole with another hole . Ass*holes
www.bbc.co.uk...